How to Start Jeans Business
There might be many of you who are wearing jeans or denim at this time and you are reading our article. What I mean to say is that this is one such word of the textile industry which needs no introduction. This word is so famous all over the world that you will find people wearing jeans everywhere. It is so common nowadays that people wear it on almost every occasion. So today Quick Support will tell you how you can start your business with this most popular outfit of the textile industry. So let’s understand about this rough and tough business model.
Place of jeans in Indian textile industry
First of all, let us know where jeans stand in the Indian textile industry. If we talk about the Indian textile industry, then in the 80s, Flying Machine first introduced denim in India. After that, Lee, Levis and other market players gradually came to India. India’s denim industry is growing at a rate of 15 to 18% every year and as far as the Indian youth is concerned, most people do not see denim as casual wear, for them it is a fashion statement. The Indian denim industry is male dominated, meaning about 85% of denim products are made for men, 10% for women and 5% for children. Today, India’s capacity to produce denim is about 1 million meters per year. Almost half of the denim produced worldwide is made in Asia. The global market of denim is about 64 billion dollars and most of your wardrobe will also have jeans.
Jeans Manufacturing Business: A Good Option
So if we talk about jeans manufacturing business, then this is a good business model here. The most popular is readymade jeans. Jeans are popular in almost every age group and by 2025, about 90 lakh jeans pants will be required every year in India. So let us tell you some steps by which you can set up your own jeans company.
Steps to set up your own jeans company
For this, let us first talk about the market opportunity. Non-branded jeans are in more demand than branded jeans in India. Because jeans of popular brands like Flying Machine, Levis, Lee, Lee Cooper, Pepe Jeans are sold at very high prices and are out of the budget of the common public. If we buy them as a hobby then it is a different matter but we also look for reasonable clothes in showrooms or malls. That is why the demand for non-branded jeans is high in India and their market growth in India is 8 to 12% every year.
Business Capital and Investment
If you want to go into manufacturing business, then first of all you have to work on business capital and investment. Because setting up a manufacturing unit, buying machines, manpower, space for factory, warehouse, transport, raw materials, all these things will cost lakhs. Even before that you have to register your company and get a license. For this you can register a private limited company. In this model, the founders of the company themselves set up the company on their own will, whose minimum capital is ₹ 1 lakh. At least two people are required to open a private limited company and a private limited company can have a maximum of 200 employees. A private limited company is not allowed to sell its shares in public or among the common people. If a company has all these features, then that company has to use Private Limited at the end of its name.
Types of company registration
Now let’s talk about sole proprietorship. In this type of company, only one person is the owner of the company and it is the easiest task to register such a company in India. To register such a company, you will need Aadhar card, PAN card, bank account and registered office proof or rental agreement. After all these documents are ready, you can get the registration certificate work done from a chartered accountant and then you can start your work.
The next option is 1 person company. Before 2013, at least two directors were required to form a company in India. But in 2013, the Central Government gave the right to start a company with just one person. It is easier to manage than a private limited company, loans are available quickly and it can be started with the approval of Digital Signature Certificate, Director Identification Number and company name.
Talking about partnership firms, if you have decided to have a partner in your business, then the easiest way is to form a partnership firm. For this, you will have to get a partnership deed made along with your partners, which will have all the rules and regulations about how the company will run and how the partners will share the profits among themselves. It is a little easier to open a partnership firm in which the risk is shared among all the partners. After being established, it is also easy to wind up or close such a company. Due to having many partners, responsibilities are also divided among them, but mutual consent of all the partners is necessary for the company to run smoothly.
Other necessary registrations
Now let’s talk about GST registration, with the advent of GST, it has become mandatory to get your GST number to do any business. To do business, you will also have to get a trade license from your local authority, and if you want subsidy from the government, then you will have to get registered with MSME i.e. Ministry of Micro Small and Medium Enterprises. If you get SSI i.e. Small Scale Industries registration done in MSME, then you become eligible to get subsidy. Employees Provident Fund is also necessary for the company i.e. EPF registration, as soon as there are more than 20 employees in the company, then you will have to get it. Also get registered with Employees State Insurance so that if any staff falls ill, then you do not have to bear the expenses from your pocket. Talking about trademark, after all this, you will also have to register the trademark so that you can establish your brand name and talking about IEC code, if you are planning to export your product outside India, then you will also have to get the Import Export Code.
Things required for jeans manufacturing
And after knowing all this, now for jeans manufacturing business you will also have to look for the location where you will set up your production unit. Apart from this, there should also be water supply, drainage facility and electricity supply. After that you will also have to find a supplier for the supply of raw materials, who will give you threads, buttons, zippers, stickers, labels and logos.
A jeans manufacturing unit requires stitching machine, chain stitching machine, folding machine, stain removing machine, washing machine, cutting machine, embroidery machine, ironing machine, printing machine, logo making machine and laser machine.
Conclusion: How to grow your business
For more information on this industry or how the manufacturing unit works, try to get an industrial tour or a chance to visit a unit. Also, if we talk about manpower, you will have to hire it from the industry itself who is expert in its art and craft. Once the product is made from the factory, you can launch it in the local market, domestic market and international market. Apart from this, you can also launch it on online platforms like Alibaba, Amazon, Flipkart, Mitra. With good discount facilities, a place can be made among domestic and global customers.
Now let’s talk about readymade wholesale or retail business of jeans, for both you need a shop or showroom and a store room. According to the business, some employees and necessary documentation like the shop should be registered, trade license should be there, GST registration should be there. If you want cheap jeans and denim products then in India Ullas Nagar of Ahmedabad, Gandhinagar of Delhi and Metia Buruj of Kolkata are the biggest hubs. Talking about Ahmedabad, supplies are made from here to the whole country and Ahmedabad’s market share is about 45%. It would be best that you go and explore all these markets yourself and find a reliable supplier and deal with them because if you get quality product at the right price then you can earn good profit. Also, if you want to create your own brand without setting up a factory, then you can get your logo on the generic produced jeans. If you do market research, you will get a lot of information and you will get to know how much to invest in the business, how to grow the business, which quality is better, what are the latest trends, etc.
If you want fashionable jeans then you can go to Mumbai. Most of the things there are made keeping in mind the international fashion. In Metia Buruj of Kolkata you will get cheap jeans which start from 60 to 70 and the range increases according to the quality. For some high quality and branded products you can also visit Bangalore and you can also organize a sale with decent quality jeans and you can also sell good quality jeans at standard rates. Apart from this, if you want to move ahead with any branded material then you will have to take franchise or dealership of brands like Lee, Levis, Pepe Jeans, John Players.
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